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Mumbai: Mumbai's resilient residential market continues its onwards strides with significant growth in sales and new launches. As India’s financial capital, Mumbai continues to attract substantial real estate investments, exemplified by record-high sales values and strategic infrastructure developments, stated JLL's latest report, "Mumbai Residential Market-Through the Lens of Time," launched at the National Real Estate Development Council’s (NAREDCO) flagship event, The Real Estate Forum, 2024 held in Mumbai.
The city’s comprehensive infrastructure projects, including the Mumbai Trans Harbour Link (MTHL), Navi Mumbai Suburban Rail, and various Metro lines, have significantly improved its connectivity with the suburbs and the sister cities of Thane and Navi Mumbai. This enhanced accessibility has directly contributed to an uptick in residential launches and sales, particularly in Navi Mumbai, Thane, and Western Suburbs, the report said.
As of June 2024, Mumbai stands as one of the leading contributors to pan-India launches and sales. Residential sales value in 2023 breached Rs 1 lakh crore and is expected to surpass Rs 1.35 lakh crore in 2024, setting a record high for the city. Additionally, the Months to Sell (MTS) inventory decreased from 58 months in March 2022 to 31 months in June 2024. By 2030, the ongoing infrastructure projects aiming to enhance multimodal connectivity are expected to foster new residential hubs and revitalize existing ones.
“Mumbai’s real estate development started in the south and shifted to the suburban markets in north and east by 2016. City’s significant focus on multi-modal means of transport by mid- 2024 created further boost and resulted in growth of new areas and regeneration of the existing core city locations. Infrastructure initiatives planned by 2030, are expected to reduce the average travel time within the city by 50%, promote residential sector growth as well reduce the pressure on existing modes of public transportation,” said the Chief Economist and Head of Research and REIS, India, JLL, Dr Samantak Das.
Mumbai's residential real estate market has experienced a significant boost over the last few years, thanks to the effective implementation of MahaRERA. Post the pandemic, the market saw a remarkable recovery in both sales volumes and new project launches, reaching unprecedented heights in 2022.
This positive trend sustained in 2023, marking another milestone in the city’s residential asset class. In the first half of 2024, Mumbai's residential market achieved its highest-ever sales over a six-month period, already reaching around 57% of the total sales recorded in 2023.
As a result, Mumbai's contribution to India's overall residential market activity has grown substantially, accounting for approximately 25% of new project launches and 22% of total sales from 2022 to H1 2024. The residential sales value during this period exceeded INR 2.8 lakh crore.
The President of NAREDCO Maharashtra, Prashant Sharma commented, "The robust growth trajectory of Mumbai's residential real estate market, as outlined in JLL's latest report, underscores the city's pivotal role in shaping India's real estate landscape. The remarkable sales volumes and the significant land acquisitions for future developments reflect the confidence that both developers and homebuyers have in the city’s long-term potential. As infrastructure projects continue to enhance connectivity and create new residential hubs, we foresee Mumbai’s market not only maintaining its momentum but also setting new benchmarks in the coming years.”
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“As of June 2024, Mumbai stands as one of the leading contributors to pan India launches and sales. It is also the largest residential market in terms of sales value which is expected to surpass Rs 1.35 lakh crore in 2024 - a record high for the city. Planned infrastructure expansions have encouraged developers to acquire a total of more than 260 acres of land (since 2022) within the city limits and its peripherals for future residential developments, thereby paving the way for MMR’s expansion,” said the Senior Managing Director - Mumbai MMR & Gujarat, and Head Alternatives, India, JLL, Karan Singh Sodi.
